SB850 - Relating to the payment of certain ad valorem tax refunds.

      S.B. No. 850         AN ACT   relating to the payment of certain ad valorem tax refunds.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Chapter 1, Tax Code, is amended by adding Section   1.072 to read as follows:           Sec.   1.072.     APPLICATION FOR TAX REFUND. A person may but is   not required to apply for a refund of taxes due to the person under   this title if the amount of the refund is at least $20.          SECTION 2.  Section 11.35(j), Tax Code, is amended to read as   follows:          (j)  If a person qualifies for the exemption authorized by   this section after the amount of the tax due on the qualified   property is calculated and the effect of the qualification is to   reduce the amount of the tax due on the property, the assessor for   each applicable taxing unit shall recalculate the amount of the tax   due on the property and correct the tax roll.  If the tax bill has   been mailed and the tax on the property has not been paid, the   assessor shall mail a corrected tax bill to the person in whose name   the property is listed on the tax roll or to the person's authorized   agent.  If the tax on the property has been paid, the tax collector   for the taxing unit shall refund to the person who paid the tax the   amount by which the payment exceeded the tax due.  [ No interest is   due on an amount refunded under this subsection. ]          SECTION 3.  Section 11.431(b), Tax Code, is amended to read   as follows:          (b)  If a late application is approved after approval of the   appraisal records by the appraisal review board, the chief   appraiser shall notify the collector for each taxing unit in which   the residence is located not later than the 30th day after the date   the late application is approved.  The collector shall deduct from   the person's tax bill the amount of tax imposed on the exempted   amount if the tax has not been paid. If the tax has been paid, the   collector shall refund to the person who was the owner of the   property on the date the tax was paid the amount of tax imposed on   the exempted amount.  [ The collector shall pay the refund not later   than the 60th day after the date the chief appraiser notifies the   collector of the approval of the exemption. ]  A person is not   required to apply for a refund under this subsection to receive the   refund.          SECTION 4.  Section 11.438(c), Tax Code, is amended to read   as follows:          (c)  If a late application is approved after approval of the   appraisal records for a year for which the exemption is granted, the   chief appraiser shall notify the collector for each taxing unit in   which the property was taxable in that year.  The collector shall   deduct from the organization's tax bill the amount of tax imposed on   the property for that year and any penalties and interest relating   to that tax if the tax and related penalties and interest have not   been paid.  If the tax and related penalties and interest on the   property for a tax year for which an exemption is granted under this   section were paid under protest, the collector shall [ organization   is eligible for a ] refund to the organization [ of ] the tax,   penalties, and interest paid [ as provided by Section 31.11.   The   deadline prescribed by Section 31.11(c) for applying for a refund   does not apply to a refund under this section ].          SECTION 5.  Section 11.439(b), Tax Code, is amended to read   as follows:          (b)  If a late application is approved after approval of the   appraisal records for the year for which the exemption is granted,   the chief appraiser shall notify the collector for each taxing unit   in which the property was taxable in that year not later than the   30th day after the date the late application is approved.  The   collector shall correct the taxing unit's tax roll to reflect the   amount of tax imposed on the property after applying the exemption   and shall deduct from the person's tax bill the amount of tax   imposed on the exempted portion of the property for that year.  If   the tax and any related penalties and interest have been paid, the   collector shall pay to the person who was the owner of the property   on the date the tax was paid a refund of the tax imposed on the   exempted portion of the property and the corresponding portion of   any related penalties and interest paid.  [ The collector shall pay   the refund not later than the 60th day after the date the chief   appraiser notifies the collector of the approval of the exemption. ]          SECTION 6.  Section 31.071, Tax Code, is amended by amending   Subsection (c) and adding Subsection (d) to read as follows:          (c)  If the property is no longer subject to a challenge,   protest, or appeal at any time before the delinquency date, the   collector shall apply the amount paid by the property owner under   this section to the tax imposed on the property and shall refund the   remainder, if any, to the property owner in accordance with Section   31.12 .             (d)   If the property is still subject to an appeal on the last   working day before the delinquency date, or at an earlier date if so   requested by the property owner, the collector shall apply the   amount paid under this section to the payment required by Section   42.08(b) [ of this code ] and shall retain the remainder, if any,   until the appeal is completed.  When the appeal is completed, the   collector shall apply any amount retained under this subsection   [ section ] to the tax ultimately imposed on the property that is not   covered by the payment under Section 42.08(b) and shall refund the   remainder, if any, to the property owner. The collector shall make   the refund not later than the 60th day after the date the chief   appraiser notifies the collector of the final determination of the   appeal. If the collector does not make the refund within the period   required by this subsection, the collector shall include with the   refund interest on the amount refunded at an annual rate of 12   percent, calculated from the delinquency date for the taxes being   refunded until the date the refund is made.   If the refund is not   made within the period required by this subsection due to an act or   omission of the chief appraiser, the appraisal district that   employs the chief appraiser shall reimburse the collector for any   interest required to be included with the amount refunded.          SECTION 7.  Section 31.072(g), Tax Code, is amended to read   as follows:          (g)  When the tax bill is prepared for property for which an   escrow account is established, the collector shall apply the money   in the account to the taxes imposed and deliver a tax receipt to the   taxpayer together with a refund of any amount in the account in   excess of the amount of taxes paid.   The collector shall issue the   refund to the taxpayer not later than the 60th day after the date   the collector determines that the amount of money in the escrow   account exceeds the amount of taxes imposed. If the amount in the   escrow account is not sufficient to pay the taxes in full, the   collector shall apply the money to the taxes and deliver to the   taxpayer a tax receipt for the partial payment and a tax bill for   the unpaid amount.  If the escrow account applies to more than one   taxing unit or to more than one item of property, the collector   shall apply the amount to each taxing unit or item of property in   proportion to the amount of taxes imposed unless the contract   provides otherwise.          SECTION 8.  Section 31.11, Tax Code, is amended by amending   Subsections (a), (b), (c), (f), (g), and (k) and adding Subsections   (a-1) and (a-2) to read as follows:          (a)  If a taxpayer submits a tax payment that exceeds by $20   or more the amount of taxes the taxpayer owes for a tax year to a   taxing unit, the collector for the taxing unit shall refund the   amount of the erroneous or excessive payment to the taxpayer, or   apply the amount of the erroneous or excessive payment to the amount   of taxes the taxpayer owes for the following tax year, after the   collector determines the payment was erroneous or excessive if the   auditor for the taxing unit agrees with the collector's   determination.           (a-1)     If a taxpayer submits a tax payment that exceeds by   less than $20 the amount of taxes the taxpayer owes for a tax year to   a taxing unit and the taxpayer applies to the [ tax ] collector for   the [ of a ] taxing unit for a refund of the [ an overpayment or ]   erroneous or excessive payment [ of taxes ], the collector for the   taxing unit shall refund the amount of the erroneous or excessive   payment to the taxpayer after the collector determines that the   payment was erroneous or excessive if [ , and ] the auditor for the   taxing unit agrees with the collector's determination .           (a-2)  The [ , the ] collector for a taxing unit shall make a   refund under Subsection (a) or (a-1) using [ the amount of the   excessive or erroneous payment from ] available current tax   collections or money [ from funds ] appropriated by the taxing unit   for the purpose of making refunds.  [ However, the collector may not   make the refund unless:                [ (1)     in the case of a collector who collects taxes for   one taxing unit, the governing body of the taxing unit also   determines that the payment was erroneous or excessive and approves   the refund if the amount of the refund exceeds:                      [ (A)     $5,000 for a refund to be paid by a county   with a population of 2.5 million or more; or                      [ (B)     $500 for a refund to be paid by any other   taxing unit; or                [ (2)     in the case of a collector who collects taxes for   more than one taxing unit, the governing body of the taxing unit   that employs the collector also determines that the payment was   erroneous or excessive and approves the refund if the amount of the   refund exceeds:                      [ (A)     $5,000 for a refund to be paid by a county   with a population of 2.5 million or more; or                      [ (B)     $2,500 for a refund to be paid by any other   taxing unit. ]          (b)   Notwithstanding Subsections (a) and (a-1), a [ A ] taxing   unit that determines a taxpayer is delinquent in ad valorem tax   payments on property other than the property for which liability   for a refund arises or for a tax year other than the tax year for   which liability for a refund arises may apply the amount of an   overpayment or erroneous payment to the payment of the delinquent   taxes if the taxpayer was the sole owner of the property:                (1)  for which the refund is sought on January 1 of the   tax year in which the taxes that were overpaid or erroneously paid   were assessed; and                (2)  on which the taxes are delinquent on January 1 of   the tax year for which the delinquent taxes were assessed.          (c)  Except as provided by Subsection (c-1), an application   for a refund must be made within three years after the date of the   payment or the taxpayer waives the right to the refund.  A taxpayer   may apply for a refund by filing:                (1)  an application on a form prescribed by the   comptroller by rule; or                (2)  a written request that includes information   sufficient to enable the collector and the auditor for the taxing   unit [ and, if applicable, the governing body of the taxing unit ] to   determine whether the taxpayer is entitled to the refund.          (f)  This subsection applies only to an application for a   refund that is filed with the collector for a taxing unit after the   deadline for filing the application is extended [ is required to be   approved ] by the governing body of the [ a ] taxing unit under   Subsec [Text truncated for display. 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